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8 Oct 2013
USD/CAD erases gains after Canadian data
FXstreet.com (Córdoba) - The USD/CAD extended its downward correction and completely erased intraday gains at the beginning of the American session after data showed Canadian housing starts grew more than expected in September.
Housing starts rose 5.3% in September to reach 193.6K versus forecast of 185.0K, which gave the loonie a boost. Other data showed Canada's trade deficit widened more than expected in August, tempering CAD advance. The USD/CAD fell to a fresh daily low of 1.0307 but buyers reappeared ahead of the 1.0300 level. At time of writing, the pair is trading around 1.0315, virtually unchanged since opening.
USD/CAD technical levels
In terms of technical levels, if USD/CAD breaks below 1.0300, next supports could be faced at 1.0287/90 (Oct 1 & 4 lows) and 1.0273 (Sep 30 low). On the other hand, resistances are seen at 1.0333 (Oct 7 & 8 highs) and 1.0355 (Oct 2 high).
Housing starts rose 5.3% in September to reach 193.6K versus forecast of 185.0K, which gave the loonie a boost. Other data showed Canada's trade deficit widened more than expected in August, tempering CAD advance. The USD/CAD fell to a fresh daily low of 1.0307 but buyers reappeared ahead of the 1.0300 level. At time of writing, the pair is trading around 1.0315, virtually unchanged since opening.
USD/CAD technical levels
In terms of technical levels, if USD/CAD breaks below 1.0300, next supports could be faced at 1.0287/90 (Oct 1 & 4 lows) and 1.0273 (Sep 30 low). On the other hand, resistances are seen at 1.0333 (Oct 7 & 8 highs) and 1.0355 (Oct 2 high).